The Audi Group that includes the Audi, Lamborghini and Ducati brands is among the most recognized manufacturers of premium automobiles, supercars, Super SUVs and sporty motorcycles. Audi is among the best selling premium car brands in the world and a part of the brand portfolio of Volkswagen Motors. A globally famous car brand, Audi has brought several models, including sedans and SUVs, to the market and enjoys huge fanfare in most corners of the world. Apart from its stylish design, technology is also a key factor driving the popularity of the Audi brand models in all corners of the world. The four interlocking rings of Audi signify the union of four brands that came together to become what we today know as Audi.
Four interlocking rings symbolized the merger of four automobile manufacturers based in the German state of Saxony: Audi, DKW, Horch, and Wanderer became Auto Union AG, then the second-largest motor vehicle manufacturing group in Germany.Four Rings Four Brands.
The automobile industry is undergoing a radical transformation, but it is also going through a challenging phase. Apart from increasing competition, demographic changes, and technological innovation at a revolutionary speed, coronavirus has also made the drive challenging for automobile brands. Despite these challenges, the automobile industry is gearing for a transition into an era of sustainable mobility. Audi has also formed a plan to progress towards sustainable mobility and grow its fleet of environment-friendly cars in stages. It is also among the best selling premium car brands in several leading markets, including China.
Target Market & Positioning:
The target market of Audi is the affluent class of modern urban consumers. Among Audi’s consumers are highly educated, tech-savvy and modern consumers who appreciate style and quality as well as performance and rider safety. Audi makes premium cars and targets the higher end segment of the market. Its cars are popular among both male and female riders. The company has introduced a nice range of cars that appeal to tech-savvy millennial consumers.
Audi has positioned itself as a luxurious ride for urban-affluent consumers. Its products have a distinct touch of luxury that appeals to modern consumers who appreciate performance with design and quality. Its distinctive appeal comes from its mix of product design and quality, as well as innovation. Audi offers a unique riding experience that matches the expectations of affluent urban riders with a penchant for luxurious driving. At the same time, Audi also has a sporty and adventurous appeal with a strong touch of luxury and comfort.
Read a marketing mix of Audi including its four P’s: Product, Place, Price, and Promotion.
Product Mix of Audi:
Audi is a brand of premium cars and SUVs that enjoys strong recognition worldwide. The brand is a part of Volkswagen’s product portfolio, which also includes several more leading premium and luxury car brands. In 2019, Audi delivered 1,845,573 units of its Audi brand models to its customers worldwide. Audi has brought several popular models to the market, of which the most popular model is the Audi Q5 model based on the number of deliveries in 2019. The company delivered 305,235 units of Audi Q5 in 2019 compared to 294,905 units in 2018.
The product portfolio of the Audi brand includes a vast range of cars and SUVs from the Audi A1 car line, through the A3, A4, and A5 product families, right up to the full-size car lines A6, A7, and A8. The TT range emphasizes the sporty character of Audi. The brand also enjoys a broad presence in the SUV segment. SUV models by Audi include Q2, Q3, Q5, Q7, and Q8. Audi presented the Audi e-Tron, its first fully electric SUV in 2018 released the model in the market in the first quarter of 2019.
Audi also owns Audi sport GmbH.
“Audi Sport GmbH – formerly quattro GmbH – was established in 1983 as a fully owned subsidiary of AUDI AG. The company has been registered as a manufacturer of high-performance cars since 1996. Audi Sport GmbH headquarters are based in Neckarsulm. The Audi Sport High-performance R and RS models are produced at the Audi Sport facilities at “Böllinger Höfe” (R8) and at the Neckarsulm and Ingolstadt production sites.”Audi Media Center
Audi Placement :
The home market of Audi is Germany where the company has experienced growth in sales during 2019 compared to the previous year. Its headquarters are located at Ingolstadt, a city in the largest German state called Bavaria. Audi has a global sales and distribution network, that includes both Audi and Volkswagen sales channels. The company has also established a global manufacturing network with manufacturing facilities in key locations around the globe. Below is a description of the manufacturing network of Audi which extends from India and China to Italy, Germany, and Brazil.
A list of Audi production sites worldwide:
- Ingolstadt (Germany)
- Brussels (Belgium)
- Bratislava (Sloakia)
- Győr (Hungary)
- Sant’Agata Bolognese (Italy)
- Changchun (China)
- Tianjin (China)
- Foshan (China)
- San Jose Chiapa (Mexico)
- Martorell (Spain)
- Neckarsulm (Germany)
- São José dos Pinhais (Brazil)
- Manaus (Brazil)
- Bologna (Italy)
- Aurangabad (India)
- Amphur Pluakdaeng (Thailand)
China is a strategically important market for Audi where its parent company Volkswagen has partnered with FAW Motors. The FAW-Volkswagen Automotive Company, Ltd., Changchun (China) is ramping up its Audi production capabilities in China to grow it to over 700,000 over the coming years.
Price Mix of Audi
Audi has used a premium pricing strategy corresponding to its premium product strategy. The company sells a large range of premium models designed for the higher-end segment of consumers. Despite the premium pricing strategy, Audi has successfully grown in recent years and continues to expand its market worldwide and especially in China. Apart from China, the United States is also a core market of the Audi group where Audi brands including Audi, Lamborghini, and Ducati brands enjoy high popularity. The prices of sedans made by Audi start from $33,300 in the US market. It has also brought several models in the $150,000 and higher price range. Its highest priced model is the 2020 R8 Spyder starting at $182,100 in the United States. The premium pricing of the brand is also associated with its premium image and its positioning strategy in the global automobile market.
Promotion Mix of Audi:
Audi’s marketing strategy is focused on promoting a consumer-friendly image and uses digital channels of marketing mainly to promote its brand and products. The four rings make it a highly recognized brand in most corners of the world. In recent years, Audi has brought some strategic changes to its marketing and business strategies to align them better with the changing market dynamics. While the preference for SUVs and environment-friendly vehicles has grown among consumers in recent years, the growing use of digital technology in people’s lives has also made it mandatory for the auto firms to create products that fit in the lifestyles of their consumers and particularly in more advanced markets like the US and China. Product innovation is also a part of Audi’s marketing strategy and as a part of the latest promotional strategy, Audi is focusing more on providing a superior customer experience. It engages its customers on social media and uses digital marketing in combination with the other traditional methods of promotion most auto brands use like Auto shows, sponsorships, events, and media publicity. Video marketing is also a core pillar of Audi’s digital marketing strategy and the company uses promotional as well as educational videos to market its products and grow brand awareness worldwide. Audi mainly targets the Millenials through its marketing strategy. It has positioned itself as a sporty brand that caters to the needs of the customers who want style, sports, and technologically advanced products. The mission statement of Audi reads,
“We act purposefully, systematically and with full effort – inAudi Mission Statement (annual report 2019).
other words, consistently. We have therefore entitled our
mission “consistently Audi.”
Other sources: Audi Annual Report 2019.
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